Market reactions and the role of corporate governance in mergers & acquisitions : evidence from Indian firms.
The importance of Merger and Acquisitions (M&A) as a strategy to pursue organizational objectives is evident by its increase over the years. This paper aims to analyze the M&A landscape in India. Particularly, we want to study how the strategic M&A’s decision of acquiring firms is influe...
| Main Authors: | , , |
|---|---|
| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2010
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/35556 |
| _version_ | 1811697375855509504 |
|---|---|
| author | Lye, Charmian Hui Qin. Tan, Hong Li. Tran, Ngoc Quynh Huong. |
| author2 | Nilanjan Sen |
| author_facet | Nilanjan Sen Lye, Charmian Hui Qin. Tan, Hong Li. Tran, Ngoc Quynh Huong. |
| author_sort | Lye, Charmian Hui Qin. |
| collection | NTU |
| description | The importance of Merger and Acquisitions (M&A) as a strategy to pursue organizational objectives is evident by its increase over the years. This paper aims to analyze the M&A landscape in India. Particularly, we want to study how the strategic M&A’s decision of acquiring firms is influenced by their pre-acquisition characteristics and how the market reacts to such a decision.
Five corporate governance factors namely, proportion of independent directors, board size, Chairman-CEO duality, board activities, CEO tenure and number of board meetings were used as predictors to determine whether the company is likely to pursue a focused or diversified acquisition. This is coupled with three financial factors: leverage, cashflow and profitability as control variables. The final result of this study may provide valuable insights to managers in ensuring a balanced focus on these factors in managing a firm.
The statistical analyses reaffirmed our main hypothesis that focused acquisitions lead to positive market reaction. In addition, companies with high proportion of independent directors, Chairman-CEO duality, high leverage and high profitability are more likely to conduct focused acquisition. |
| first_indexed | 2024-10-01T07:54:16Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/35556 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T07:54:16Z |
| publishDate | 2010 |
| record_format | dspace |
| spelling | ntu-10356/355562023-05-19T06:16:16Z Market reactions and the role of corporate governance in mergers & acquisitions : evidence from Indian firms. Lye, Charmian Hui Qin. Tan, Hong Li. Tran, Ngoc Quynh Huong. Nilanjan Sen Nanyang Business School DRNTU::Business::Finance::Mergers and acquisitions The importance of Merger and Acquisitions (M&A) as a strategy to pursue organizational objectives is evident by its increase over the years. This paper aims to analyze the M&A landscape in India. Particularly, we want to study how the strategic M&A’s decision of acquiring firms is influenced by their pre-acquisition characteristics and how the market reacts to such a decision. Five corporate governance factors namely, proportion of independent directors, board size, Chairman-CEO duality, board activities, CEO tenure and number of board meetings were used as predictors to determine whether the company is likely to pursue a focused or diversified acquisition. This is coupled with three financial factors: leverage, cashflow and profitability as control variables. The final result of this study may provide valuable insights to managers in ensuring a balanced focus on these factors in managing a firm. The statistical analyses reaffirmed our main hypothesis that focused acquisitions lead to positive market reaction. In addition, companies with high proportion of independent directors, Chairman-CEO duality, high leverage and high profitability are more likely to conduct focused acquisition. BUSINESS 2010-04-20T09:19:23Z 2010-04-20T09:19:23Z 2010 2010 Final Year Project (FYP) http://hdl.handle.net/10356/35556 en Nanyang Technological University 47 p. application/pdf |
| spellingShingle | DRNTU::Business::Finance::Mergers and acquisitions Lye, Charmian Hui Qin. Tan, Hong Li. Tran, Ngoc Quynh Huong. Market reactions and the role of corporate governance in mergers & acquisitions : evidence from Indian firms. |
| title | Market reactions and the role of corporate governance in mergers & acquisitions : evidence from Indian firms. |
| title_full | Market reactions and the role of corporate governance in mergers & acquisitions : evidence from Indian firms. |
| title_fullStr | Market reactions and the role of corporate governance in mergers & acquisitions : evidence from Indian firms. |
| title_full_unstemmed | Market reactions and the role of corporate governance in mergers & acquisitions : evidence from Indian firms. |
| title_short | Market reactions and the role of corporate governance in mergers & acquisitions : evidence from Indian firms. |
| title_sort | market reactions and the role of corporate governance in mergers acquisitions evidence from indian firms |
| topic | DRNTU::Business::Finance::Mergers and acquisitions |
| url | http://hdl.handle.net/10356/35556 |
| work_keys_str_mv | AT lyecharmianhuiqin marketreactionsandtheroleofcorporategovernanceinmergersacquisitionsevidencefromindianfirms AT tanhongli marketreactionsandtheroleofcorporategovernanceinmergersacquisitionsevidencefromindianfirms AT tranngocquynhhuong marketreactionsandtheroleofcorporategovernanceinmergersacquisitionsevidencefromindianfirms |